CAAP reforms pushed to help crippled aviation sector

Big business groups are urging Congress for sweeping reforms in the aviation sector, starting with the amendment of the Civil Aviation Authority Act of the Philippines (Caap) to stimulate growth and aid recovery in the postpandemic era.

In a statement on Wednesday, the Joint Foreign Chambers of the Philippines and local business groups welcomed the passage of House Bill No. 8700 and urged the Senate to file a counterpart measure. The groups are hoping the new law would be approved by the end of 2021.

The amendments would strengthen the role of Caap as a safety regulator, make domestic aviation more competitive and also pave the way for the separation of the agency’s conflicting roles as accident investigator and airport operator.

“The Caap bill amendments is one of the priority measures recommended by the business groups to recover from the negative GDP [gross domestic product] brought by the pandemic,” the groups said in a statement.

HB 8700 hopes to extend the term of the Caap director general, insulating the position during times when a transfer of power occurs when a new administration enters. Caap will also be exempted from the Salary Standardization Law, allowing the organization to provide competitive pay to employees.

The bill also provides a framework for the separation of domestic and international airport operations of Caap.

These will be transferred to a so-called Airport Governing Authority to be established within five years of the passage of the law.

The business groups said the amendments followed the best practices in other countries.

“Amendments to RA 9497 will sustain efforts initiated by Caap in upgrading the status of Philippine aviation so that it may gain the trust of international bodies monitoring and accrediting aviation quality throughout the world,” their statement read.